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ECJ considers scope of “logistical support” to the Government of Iran as Iranian company loses challenge to its re-listing

On 25 June, the General Court of the European Union dismissed Iran Offshore Engineering & Construction Company’s (“IOEC”) challenge to its re-listing under the EU’s nuclear proliferation-related sanctions list against Iran in Case T-95/14 Iranian Offshore v Council. In its judgment, the Court considered the EU Council’s re-listing of IOEC on grounds that it was an “important entity” in Iran’s energy sector which “provides financial and logistical support to the government of Iran”.

IOEC had successfully applied to annul its designation in September 2013. The EU Council subsequently relisted IOEC for providing “financial and logistical support to the Government of Iran” in November 2013.

In its judgment, the court considered that “logistical support” was not limited to transport activities, but included a broad range of different types of support which address the government’s logistical needs. The court concluded that this covered IOEC’s role in the construction and installation of offshore facilities, on which the Iranian oil and gas industry was effectively dependent, and upheld IOEC’s designation as it provides logistical support to the Iranian government

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